Which one of the following statements regarding the taxes of state and local governments is true? a. The greatest source of tax revenue to state and local governments is sales taxes. b. Corporate income taxes are a greater source of tax revenue to state and local governments than personal income taxes. c. The greatest source of revenue to state and local governments is property taxes. d. State and local governments collect more tax revenue than the federal government.

Question

Iris Fitzpatrick

Business

7 July, 11:03

Which one of the following statements regarding the taxes of state and local governments is true? a. The greatest source of tax revenue to state and local governments is sales taxes. b. Corporate income taxes are a greater source of tax revenue to state and local governments than personal income taxes. c. The greatest source of revenue to state and local governments is property taxes. d. State and local governments collect more tax revenue than the federal government.

+2

Answers (1)

Know the Answer?

Shirley Holder · Answer 1

The correct answer is letter "C": The greatest source of revenue to state and local governments is property taxes.

Explanation:

According to a study conducted by the U. S. Census Bureau & Rockefeller Institute of Government, between 1992 and 2010 property taxes represented the 31% of the total tax revenue for state and local governments in the U. S. followed by income taxes (26%), and sales taxes (24%). The federal government also contributes to states and local governments through intergovernmental transfers so states, counties, and districts can have enough funds for their operations.